MIRA INFORM REPORT

Report Date :

12.04.2013

IDENTIFICATION DETAILS

Name :	OIL AND NATURAL GAS CORPORATION LIMITED

Registered Office :	Jeewan Bharti Building, Tower-II, 124 Indira Chowk, New Delhi - 110001

Country :	India

Financials (as on) :	31.03.2012

Date of Incorporation :	23.06.1993

Com. Reg. No.:	55-054155

Capital Investment / Paid-up Capital :	Rs. 42777.591 Millions

CIN No.: [Company Identification No.]	L74899DL1993GOI054155

TAN No.: [Tax Deduction & Collection Account No.]	MUMO00241D

PAN No.: [Permanent Account No.]	AAACO1598A

Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

Line of Business :	Manufacturer of Crude Oil, Natural Gas, Liquefied Petroleum Gas, Natural Gasoline, Ethane / Propane, Aromatic Rich Naphtha and Superior Kerosene Oil.

No. of Employees :	32862 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Aa (78)

RATING

STATUS

PROPOSED CREDIT LINE

71-85

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

Large

Maximum Credit Limit :	USD 4518000000

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is a Union Government Company. It is a well established and reputed company. Financially company appears to be strong. Performance capability is high. Liquidity position is good. The management seems to be well experienced. The subject gets good financial support from Government creditworthiness is high. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for any business dealings at usual trade terms and condition.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed b of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	Jeewan Bharti Building, Tower II, 124 Indira Chowk, New Delhi - 110001, India
Tel. No.:	91-11-23721756/ 23310156-58/ 23301000/ 23301211/ 23737973
Fax No.:	91-11-23316413/ 23766541
E-Mail :	info@ongcindia.com cmsg@ongcindia.com ent@delhi.ongc.co.in setia_sc@ongc.co.in secretariat@ongc.co.in dir_fin@ongc.co.in
Website :	http://www.ongcindia.com

Corporate Office :	P. O. Box 55, Tel Bhavan, Dehradun - 248003, Uttarakhand, India
Tel. No.:	91-135-2757121
Fax No.:	91-135-2755298

Factory :	Located at Ø Hazira Ø Uran

Regional Offices :	Located at : Ø Baroda Ø Nazira Ø Kolkata Ø Mumbai Ø Chennai

DIRECTORS

AS ON 24.09.2012

Name :	Mr. Sudhir Vasudeva
Designation :	Chairman cum Managing director
Date of Birth/Age :	25.02.1954
Qualification :	BE Chemical Engg
Date of Appointment :	01.02.2009
DIN No.:	01594524

Name :	Mr. Ajit Kumar Hazarika
Designation :	Whole-time director
Date of Birth/Age :	30.09.1952
Qualification :	BE Mechanical Engg
Date of Appointment :	09.09.2004
DIN No.:	00748918

Name :	Mr. Udaykrishna Nityanand Bose
Designation :	Whole-time director
Date of Birth/Age :	07.11.1952
Qualification :	BE Mechanical Engg
Date of Appointment :	27.09.2005
DIN No.:	00793123

Name :	Sham Vyas Rao
Designation :	Whole-time director
Address :	N-16, Panchsheel Park, New Delhi – 110017, India
Date of Birth/Age :	22.03.1953
Qualification :	MSC-Applied Geology
Date of Appointment :	25.02.2011
DIN No.:	03467068

Name :	Jamestin Kizhakkekuttu Scaria
Designation :	Whole-time director
Address :	B- 48, Chhota Singh, Block Asiad Games Village, New Delhi – 110049, India
Date of Birth/Age :	16.07.1964
Date of Appointment :	25.05.2011
DIN No.:	03535309

Name :	Mr. Aloke Kumar Banerjee
Designation :	Whole-time director
Address :	R-4, Nehru Enclave, Kalkaji, New Delhi – 110019, India
Date of Birth/Age :	13.04.1955
Date of Appointment :	22.05.2012
DIN No.:	05287459

Name :	Mr. Chandrasekharam Dornadula
Designation :	Director
Address :	B7/109 A, Safdarjang Enclave, New Delhi – 110016, India
Date of Birth/Age :	14.03.1948
Qualification :	MSC-Applied Geology, Doctorate In Volcanology & Geochemistry
Date of Appointment :	11.03.2011
DIN No.:	00307736

Name :	Mr. Deepak Nayyar
Designation :	Director
Address :	B- 48, Chhota Singh, Block Asiad Games Village, New Delhi – 110049, India
Date of Birth/Age :	25.09.1946
Date of Appointment :	20.06.2011
DIN No.:	00348529

Name :	Mr. Arun Ramanathan
Designation :	Director
Address :	Flat No. B10, ONGC Colony, Sector 39, Noida – 201301, Uttar Pradesh, India
Date of Birth/Age :	25.04.1949
Date of Appointment :	20.06.2011
DIN No.:	00308848

Name :	Mr. Samir Kumar Barua
Designation :	Director
Address :	B-136, Central Area Building, 21 Indian Institute of Technology, Mumbai – 400078, Maharashtra, India
Date of Birth/Age :	23.09.1951
Date of Appointment :	14.12.2011
DIN No.:	00211077

Name :	Mr. Om Prakash Bhatt
Designation :	Director
Address :	5-B, Friends Colony [West], New Delhi – 110066, India
Date of Birth/Age :	07.03.1951
Date of Appointment :	14.12.2011
DIN No.:	00548091

Name :	Mrs. Sushama Nath
Designation :	Director
Address :	Shreyas 6A, Sixth West, Cross Street, Shenoy Nagar, Chennai – 600030, Tamilnadu, India
Date of Birth/Age :	03.03.1961
Date of Appointment :	14.12.2011
DIN No.:	05152061

Name :	Mr. Giridhar Aramane
Designation :	Director
Address :	House No. 601, Indian Institute of Management, Campus Vastrapur, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	12.06.1963
Date of Appointment :	03.08.2012
DIN No.:	00483130

Name :	Shaktikanta Das
Designation :	Director
Address :	3, Seagull Carmichael Road, Mumbai – 400026, Maharashtra, India
Date of Birth/Age :	26.02.1957
Date of Appointment :	28.08.2012
DIN No.:	00400808

KEY EXECUTIVES

Name :	Mr. Naresh Kumar Sinha
Designation :	Secretary
Address :	D 1/69, Rabindra Nagar, New Delhi – 110003, India
Date of Birth/Age :	18.06.1955
Date of Appointment :	01.10.2008
PAN No.:	AUOPS3162M

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.12.2012

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Central Government / State Government(s)	5922546522	69.23
Sub Total	5922546522	69.23
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	5922546522	69.23
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	94737782	1.11
Financial Institutions / Banks	160096803	1.87
Insurance Companies	700108585	8.18
Foreign Institutional Investors	495271244	5.79
Sub Total	1450214414	16.95
(2) Non-Institutions
Bodies Corporate	1020766775	11.93
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	144458941	1.69
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	7534560	0.09
Any Others (Specify)	9968908	0.12
Non Resident Indians	3979376	0.05
Trusts	1634515	0.02
Clearing Members	4353221	0.05
Foreign Nationals	1796	0.00
Sub Total	1182729184	13.82
Total Public shareholding (B)	2632943598	30.77
Total (A)+(B)	8555490120	100.00
© Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	8555490120	0.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Crude Oil, Natural Gas, Liquefied Petroleum Gas, Natural Gasoline, Ethane / Propane, Aromatic Rich Naphtha and Superior Kerosene Oil.

Products :

ITC Code	Product Descriptions
27090000	Crude Oil
27112100	Natural Gas
27111900	Liquified Petroleum Gas

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity per annum	Actual Production Quantity
Crude Oil	MT	NA	27,278,278
Natural Gas	000 M 3	NA	25,322,146
Liquefied Petroleum Gas	MT	1,158,000	1,054,317
Ethane/Propane	MT	570,000	388,010
Naphtha	MT	1,502,878	1,570,184
Superior Kerosene Oil	MT	314,300	115,961
Aviation Turbine Fuel	MT	314,300	19,284
Low Sulphur Heavy Stock	MT	16,270	16,179
High Speed Diesel	MT	42,637	39,223
Liquid Diesel Oil	MT	4,950	--

Notes:

Licensed Capacity is not applicable. Production includes internal consumption and intermediary losses. Production of 203,799 MT (Previous year 28,835 MT) Crude Oil and 17,059 TM 3 (Previous year 1,268 TM 3) of Natural Gas is included being the difference between participating interest and entitlement interest in respect of RJ-ON-90/1, CB-ON/3, CB-ON/2 and RJ-ON/6 JVs. Crude Oil includes condensate 2.042 MMT (Previous year 1.958 MMT).

GENERAL INFORMATION

No. of Employees :

32862 (Approximately)

Bankers :

Ø State Bank of India

Ø Citi Bank, UK

Ø Barclays Bank, UK

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Secured loans	45000.000	0.000
Total	45000.000	0.000


Banking Relations :	--

Statutory Auditors :
	Ø Kalyaniwala and Mistry Kalpataru Heritage, 5th Floor, 127, MG Road, Fort 389, Mumbai – 400001, Maharashtra, India AAAFK7554R Ø Ray and Ray 6, Church Lane, Kolkata – 700001, West Bengal, India AADFR8764R Ø Varma and Varma, Chennai Ø S. Bhandari and Company 51, Nariman Bhawan, 5th Floor, Nariman Point, Mumbai – 400021, Maharashtra, India AAGFS7543C Ø Mehra Goel and Company, New Delhi

Cost Auditors :	Ø A.B.K. Associates, Mumbai Ø N.D. Birla and Company, Mumbai Ø M. Krishnaswamy and Associates, Chennai Ø Bandyopadhyaya Bhaumik and Company, Kolkata Ø A.C. Dutta and Company, Kolkata Ø N.L. Mehta and Company, Mumbai Ø Ramanath Iyer and Company, Delhi

Associate :	Pawan Hans Helicopters Limited [U62200DL1985GOI022233]

Jointly Controlled Entity [31.03.2011] :	Ø ONGC Mangalore Petrochemicals Limited [U40107KA2006PLC041258] Ø Petronet LNG Limited [L74899DL1998PLC093073] Ø ONGC Teri Biotech Limited [U74120DL2007PLC161117] Ø Mangalore SEZ Limited [U45209KA2006PLC038590] Ø ONGC Petro-additions Limited [U23209GJ2006PLC060282] Ø ONGC Tripura Power Company Limited [U40101TR2004PLC007544] Ø Dahej SEZ Limited [U45209GJ2004PLC044779]

Subsidiaries :	Ø Mangalore Refinery and Petrochemicals Limited [L85110KA1988GOI008959] Ø ONGC Videsh Limited [ONGC VIDESH LIMITED]

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount

30,000,000,000	Equity Shares	Rs. 5/- each	Rs. 150000.000 Millions

Issued and Subscribed Capital :

No. of Shares	Type	Value	Amount

8,555,528,064	Equity Shares	Rs. 5/- each	Rs. 42777.640 Millions

Paid-up Capital :

No. of Shares	Type	Value	Amount

8,555,490,120	Equity Shares	Rs. 5/- each	Rs. 42777.451 Millions
	Add: Forfeited Shares		Rs. 0.140 Millions
	Total		Rs. 42777.591 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		42777.600	42777.590	21388.870
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1086789.700	932266.720	851437.150
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1129567.300	975044.310	872826.020
LOAN FUNDS
1] Secured Loans		45000.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	49.750
TOTAL BORROWING		45000.000	0.000	49.750
DEFERRED TAX LIABILITIES		0.000	99503.940	89182.130
OTHER LIABILITIES		0.000	175642.550	164006.680

TOTAL		1174567.300	1250190.800	1126064.580

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		680569.700	186395.450	156485.020
Capital work-in-progress		268792.700	217787.810	157910.370

INVESTMENT		143988.100	53328.380	57720.330
DEFERRED TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	51654.400	41189.840	46785.720
	Sundry Debtors	61948.200	38458.980	30586.370
	Cash & Bank Balances	201245.700	224465.520	182310.350
	Other Current Assets	0.000	8755.180	6333.050
	Loans & Advances	309077.200	273566.540	271697.740
Total Current Assets		623925.500	586436.060	537713.230
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors		83476.730	63925.600
	Other Current Liabilities	307152.200	104672.130	56950.030
	Provisions	235556.500	49324.860	74124.020
Total Current Liabilities		542708.700	237473.720	194999.650
Net Current Assets		81216.800	348962.340	342713.580

MISCELLANEOUS EXPENSES		0.000	7960.250	8413.160
OTHER ASSETS		0.000	435756.570	402822.120

TOTAL		1174567.300	1250190.800	1126064.580

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	765150.900	658449.970	599862.770
		Other Income	75935.300	59007.700	41866.860
		TOTAL (A)	841086.200	717457.670	641729.630

Less	EXPENSES
		Consumption materials changes inventories	24509.800	9.240	(1041.070)
		Manufacturing service costs	2657.600	228975.290	203297.730
		Power and Fuel Cost	3161.800	0.000	0.000
		Contract cost	0.000	7890.120	6410.320
		Employee related expenses	67960.500	13031.250	11074.850
		Administrative selling other expenses	0.000	27935.780	23404.790
		Miscellaneous Expenditure	302072.400	0.000	0.000
		Research development expenditure	0.000	3582.440	1985.780
		Prior period items before tax	0.000	336.250	182.690
		Stock Adjustments	(913.400)	0.000	0.000
		TOTAL (B)	399448.700	281760.370	245315.090

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		441637.500	435697.300	396414.540

Less	FINANCIAL EXPENSES (D)		348.300	251.070	144.230

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		441289.200	435446.230	396270.310

Less/ Add	DEPRECIATION/ AMORTISATION (F)		74959.200	159256.530	146431.880

	PROFIT BEFORE TAX (E-F) (G)		366330.000	276189.700	249838.430

Less	TAX (H)		115100.800	86949.680	82162.870

	PROFIT AFTER TAX (G-H) (I)		251229.200	189240.020	167675.560

	EARNINGS IN FOREIGN CURRENCY
		Interest		5.060	0.000
		Services		2.720	27.250
		FOB value of Sales		47105.490	45832.400
		Others		2.230	11.280
	TOTAL EARNINGS		N.A.	47115.500	45870.930

	IMPORTS
		Capital Goods		182974.340	55433.810
		Stores and Spare Parts		6648.040	7548.870
	TOTAL IMPORTS		N.A.	189622.380	62982.680

	Earnings Per Share (Rs.)		29.36	22.12	19.60

QUARTERLY RESULTS

PARTICULARS	30.06.2012	30.09.2012	31.12.2012
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Sales Turnover	201777.800	198850.900	210932.100
Total Expenditure	102478.600	115956.200	118209.900
PBIDT (Excl OI)	99299.200	82894.700	92722.200
Other Income	10384.600	19011.300	12811.700
Operating Profit	109683.800	101906.000	105533.900
Interest	293.100	30.600	12.100
Exceptional Items	0.000	0.000	0.000
PBDT	109390.700	101875.400	105521.800
Depreciation	19975.700	16481.000	23416.500
Profit Before Tax	89415.000	85394.400	82105.300
Tax	28638.000	26428.700	26478.100
Provisions and Contingencies	0.000	0.000	0.000
Reported PAT	60777.000	58965.700	55627.200
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	60777.000	58965.700	55627.200

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	29.87	26.38	26.13

Net Profit Margin (PBT/Sales)	(%)	47.88	41.95	41.65

Return on Total Assets (PBT/Total Assets}	(%)	28.08	35.74	35.99

Return on Investment (ROI) (PBT/Networth)		0.32	0.28	0.03

Debt Equity Ratio (Total Debt/Networth)		0.04	0.00	0.00

Current Ratio (Current Asset/Current Liability)		1.15	2.47	2.76

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

PHYSICAL PERFORMANCE: 2011-12

EXPLORATION

The Company has made 23 discoveries in domestic fields (operated by ONGC); 15 new prospects and eight new pool discoveries. Out of the 15 new prospect discoveries 7 are in NELP blocks. The new prospect discoveries are- East Linch (Oil) and Uber (Gas) in Cambay basin; North Patheria (Gas) and Nohta-2 in Vindhyan Basin; GS-70 (Oil and gas). Alankari (Gas) aid Chandrika South (Gas) from Krishna Godavari offshore basin; B-127E (Oil) and BH-67 (Gas) in Mumbai Offshore basin. GK-42 (Gas) and GS-OSN-2004/1 (Gas) in Kutch offshore basin; MDW-13 (Gas) in the deepwater of Mahanadi offshore and ANDW-1 (Gas) in deepwater Andaman offshore. Hortoki discovery is the first hydrocarbon discovery in Mizoram. Outer 23 discoveries, 15 discoveries are in nomination blocks. Seven onland discoveries have already been put on production and other four discoveries in the offshore nomination blocks have the possibility of cluster development with nearby existing infrastructure. Two onland discoveries are in the process of appraisal/delineation. Total 8 discoveries (two onland and six offshore) are in NELP blocks which are governed by the PSC guidelines and appraisal/development activities will be taken upon keeping in view the time-lines of the respective blocks.

So far, the Company has made 26 discoveries in NELP blocks (up to 31st March, 2012). Out of which, DOC (Declaration of Commerciality) has already been submitted for 13 discoveries; including the Significant discoveries in KG-DWN-98/2 in KG basin and Mahanadi basin. Rest of the discoveries are under assessment/ appraisal.

RESERVE ACCRETION and RRR

The Company accreted 242.53 million metric tonnes of oil equivalent (mmtoe) of in-place volume of hydrocarbon in domestic basins (operated by ONGC). The ultimate reserves accretion has been 84.13 mmtoe. Total ultimate reserve accretion in domestic basins including ONGC's share in PSC JVs has been 85.44 mmtoe. This fiscal also the Company maintained Reserve Replacement Ratio (RRR) more than one with RRR of 1.79 (with 3P reserves).

PRODUCTION OF OIL AND GAS

The combined production of oil and oil equivalent gas (O OEG) for ONGC, including OVL and ONGC's share in PSC-JVs. in FY'12 has been 61.18 mmtoe, marginally lower by 1.4% compared to the production in FY'11 (62.05 mmtoe). The major reason for lower production during FY'12 has been the unrest in Sudan, South Sudan and Syria fields and natural decline in domestic fields (operated by ONGC).

Out of total production of 33.13 MMT of crude oil, 71 % production came from the ONGC operated domestic fields. 19% from the overseas assets and balance 10% from ONGCs share in domestic joint ventures. As far as natural gas production is concerned, majority of production (83%) came from ONGC operated domestic fields and balance 9% from overseas assets and 8% from domestic joint ventures.

PRODUCTION FROM OVERSEAS ASSETS

ONGC Videsh Limited (OVL), the wholly owned subsidiary of the company, has ten producing assets in eight countries - Venezuela (1), Brazil (1), Colombia (1), Sudan (1), South Sudan (2), Syria (1), Vietnam (1) and Russia (2). Total production from these assets during FY'12 has been 8.75 mmtoe of O OEG (Crude oil: 6.21 MMT and Gas: 2.54 BCM).

NEW PROJECTS

The Board of the Company approved development of two discovered fields i.e. B-127 cluster and C-26 cluster in FY'12, with an investment of Rs. 46,518 million. Besides this, phase-2 redevelopment of Heera and South Heera was also approved with an investment of Rs. 56,084 million. B-173A field has also been taken up for additional development with and investment of Rs. 3,525 million.

NEW SOURCES OF ENERGY

SHALE GAS

After establishing the presence of Shale gas in the country in Durgapur, the Company is planning to explore for shale gas in the identified basins such as - Cambay, Krishna Godavari, Cauvery and Bengal basins. A landmark alliance has been linked with ConocoPhillip to explore for stale gas in India and abroad. The Company has also entered into Shale gas research consortium agreement with Energy and Geoscience Institute (EGI), University of Utah. USA. At the same time a project has been sponsored in Indian School of Mines, Dhanbad for shale gas research.

COAL BED METHANE (CBM)

The company is currently operating in four CBM blocks i.e., Jharia, Bokaro, North Karanpura and Raniganj. In all Blocks, Phase-l activities have been completed. In two blocks i.e., Bokaro and North Karanpura, Development Plan has been submitted after completion of Phase-II activities Development Plan of Bokaro block has been approved in February, 2012, while approval for the development plan of North Karnapura block is awaited. In remaining two blocks i.e. Jharia and Raniganj, Phase-II activities are nearing completion and development plans will be submitted. The Company is also looking for farm-in opportunities for expeditious exploration of the CBM resources.

UNDERGROUND COAL GASIFICATION (UCG)

The company has selected Vastan Mine block in Sural district, Gujarat for UCG Pilot project. Environmental clearance for the project has been obtained from Ministry of Environment and Forest, Government of India and request has been submitted to Ministry of Coal for award of mining lease which is awaited.

ALTERNATE SOURCES OF ENERGY

The Company, through ONGC Energy Centre (OEC), a trust set up by the Company, is actively pursuing alternate energy opportunities. The Energy Centre is poised to contribute significantly towards the Company endeavours to have a healthy portfolio of alternate energy. Some of the significant initiatives in this regard are:

- Generation of hydrogen through Thermo-chemical processes: First phase of work on Cu-Cl (Copper-Chlorine) cycle has been successfully completed and the second stage i.e. Laboratory Scale Closed Loop studies of Cu-Cl is being pursued with Institute of Chemical Technology (ICT), Mumbai.

- Geothermal Power Project in Cambay Basin: OEC has planned a pilot scale Geothermal Pilot Project in Cambay Basin, which has high geothermal gradient. M/s. Talboom, Belgium will be the technology partner in this project. Through this collaborative project OEC aims to explore the possibilities of harnessing Geothermal Energy in Sedimentary Basins of India.

- Kinetic Hydro Power Project: ONGC Energy Centre has entered into an agreement with M/s. Natural Power Concepts (NPC), Hawaii, USA for the project on "Kinetic Hydro Power Generation in Rivers/Water Channels/Tail Races of Dams'.

- Wind Power Generation Project at Offshore Installations: The company has already installed wind energy farm of 51 MW and another 102 MW wind farm project is under progress. As the Company has vast experience in offshore and has more than 200 offshore installation for production of oil and gas, the possibility of installation of suitable wind generation facilities at these Installations is being explored for harnessing wind energy in offshore.

- Uranium exploration: The Company has successfully completed two parametric wells for Uranium exploration in Tamil Nadu.

DISINVESTMENT

One of the major highlights of the year that passed was that the Govt. of India divested 420,416,170 number of equity shares (4.91%) of ONGC on 1st March, 2012 using the "offer for sale through Stock Exchange Mechanism". With this, the Govt. holding of ONGC has come down from 74.14% to 69.23%, In the process Govt. has raised a sum of Rs. 127,668 million resulting in an average price of Rs. 303.67 per share against the floor price of Rs. 290 per share. LIC came out as the latest buyer acquiring 377,107,488 no. of shares (4,408% out of the total divestment of 4.91% of the paid up share capital of ONGC) raising its total holding to 810,617,088 shares (9.475% as on 1st March, 2012).

SUBSIDIARIES

ONGC VIDESH LIMITED (OVL)

OVL, the wholly-owned subsidiary of the Company for EandP activities outside India, achieved the highest-ever total revenue of Rs. 226,374 Million for the financial year (FY) 2011-12, an increase of 21.2% as compared to the total revenue of Rs. 186,711 Million for the FY 2010-11. OVL's share in production of oil and oil equivalent gas (O OEG) together with its wholly-owned subsidiaries ONGC Nile Ganga B.V., ONGC Amazon Alaknanda Limited and Jarpeno Limited was 8.753 MTOE during the FY 2011-12 as compared to 9.448 MTOE during the FY 2010-11. The Production has decreased in FY 2011-12 mainly due to geopolitical problems in Sudan and Syria. Post secession of South Sudan from Sudan w.e.f. 9th July, 2011, Blocks 1, 2 and 4 straddle between the two countries and Stock 5A is now entirely in South Sudan. Company's operations in South Sudan are temporarily under shutdown with effect from 23rd January, 2012 because of non-resolution of various issues between the Governments of South Sudan and Sudan for use of processing, transportation and port facilities in Sudan for crude oil produced in South Sudan Also, the current geo-political situation in Syria including EU sanction and the resulting restrictions on Contractors has created a difficult situation in AI Furat Petroleum Company (AFPC) project since December 2011. Excluding Syria and Sudan, the production during FY 2011-12 was almost at the level as that of FY 2010-11.

The Profit after tax (PAT) (or the FY 2011 -12 was marginally up by 1.1% from Rs. 26,905 Million during the FY 2010-11 to Rs. 27,212 Million during the FY 2011-12 mainly due to a provision made for Impairment of Rs. 19,534 Million in respect of subsidiary, Jarpeno Limited. as the 'Value In use' computed for the asset as on 31st March, 2012 was lower than its carrying value. During the year, the company has acquired 25% Participating Interest (PI) In Satpayev Block, Kazakhstan and the exploration activities have started in the block. The remaining 75% PI is held by KMG, the National Oil Company of Kazakhstan.

ONGC Videsh presently has participation in 30 projects in 15 countries. Out of 30 projects, OVL is operator in nine projects and joint operator in six projects. The producing projects in OVL are Greater Nile Oil Project in Sudan, Greater Pioneer Operating Company and Block 5A in South Sudan, Block 06.1 in Veitnam, AI Furat Project in Syria, Sakhalin-I Project and imperial Energy in Russia, Mansarovar Energy Project in Colombia, San Cristobal Project in Venezuela and Block BC-10 in Brazil. Exploration Block XXIV. Syria is on extended production testing. OVL currently has three projects under development namely Carabobo 1, in Venezuela, where first oil is expected in December 2012 and Blocks A1 and A3 in Myanmar, which are likely to commence production in May 2013. Farsi Block, Iran has discoveries and further work is being earned out. One Pipeline Project was executed and completed by OVL and handed over to Government of Sudan in October, 2005 and is currently under lease. The remaining projects are in exploration phase.

DIRECT SUBSIDIARIES OF ONGC VIDESH LIMITED:

A) ONGC NILA GANGA B.V. (ONGBV):

ONGBV, a subsidiary of OVL, is engaged in E&P activities in Sudan, South Sudan, Syria, Venezuela, Brazil and Myanmar. ONGBV holds 25% Participating Interest (PI) in Greater Nile Oil Project (GNOP), Sudan with its share of oil production of about 1.324 MMT during 2011-12. Post secession of South Sudan from Republic of Sudan effective from 9th July 2011, about 60% of fields are in South Sudan. However, major processing facilities, pipeline and port facilities are in Republic of Sudan. A new Joint Operating Company (JOC) Greater Pioneer Operating Company (GPOC) has been registered in Mauritius for petroleum operations of Block 1, 2 and 4 in Republic of South Sudan. The shareholding of ONGBV in GPOC is 25% in accordance with PI and project is jointly operated by all partners.

ONGBV holds 16.66% to 18.75% PI in four Production Sharing Contracts in AI Furat Project (AFPC), Syria with its share of oil and gas production of about 0.503 MTOE during 2011-12 ONGBV holds 40% PI in San Cristobal Project in Venezuela through its wholly owned subsidiary ONGC Nile Ganga (San Cristobal) BV with its share of oil production of about 0.894 MMT during 2011-12 ONGBV holds 15% PI in BC-10 project Brazil through its wholly owned subsidiary ONGC Campos Limited. with its share of oil and gas production of about 0.465 MTOE during 2011-12.

B) ONGC NARMADA LIMITED (ONL)

ONL, a wholly-owned subsidiary of OVL held 13.5% PI in deep water exploration Block-2, Nigeria-Sao Tome and Principe. Joint Development Zone (JDZ). OVL has communicated its intention of not continuing the block to the Operator and Joint Development Authority (JDA) of Joint Development Zone Nigeria-Sao Tome and Principe as the development of the project is not commercially viable.

C) ONGC AMAZON ALAKNANDA LIMITED (OAAL):

OAAL, a wholly-owned subsidiary of OVL, holds stake in E&P projects in Colombia, through Mansarovar Energy Colombia Limited (MECL), a 50:50 joint venture company with Sinopec of China During 2011-12, OVL's share of oil production in MECL was about 0.561 MMT.

D) JARPENO LIMITED:

Jarpeno Limited, a wholly-owned subsidiary of OVL incorporated in Cyprus, acquired Imperial Energy Corporation plc., a UK listed upstream oil exploration and production entity with its main activities in Tomsk region of Western Siberia in Russia, in January 2009. During 2011-12, Imperial Energy's oil production was about 0.771 MMT.

E) CARABOBO ONE AB:

Carabobo One AB, a wholly-owned subsidiary of OVL Incorporated in Sweden, holds 11% PI in Carabobo-I Project, Venezuela, The upstream production facilities are expected to produce about 400,0Q0 barrels per day of which approximately 200,000 barrels per day would be upgraded into light crude oil in a facility to be located in the Soledad area. Anzoategui state. The license term is for 25 years with the potential for a further extension of 15 years. Four stratigraphic wells and six slant wells were drilled for collection of samples and study of petro physical properties for drilling development wells was carried out for Accelerated Early Production of first oil in 4th quarter of 2012. Presently, Basic Engineering and feed for Upgrader and Downstream facilities and 3D-Seismic study, civil works for well pads have been awarded and awarding of drilling contract for Development of the Field is in progress.

JOINT VENTURE OF OVL

F) ONGC MITTAL ENERGY LIMITED (OMEL)

OVL along with Mittal Investments Sari (MIS) promoted OMEL, a joint venture company incorporated in Cyprus. OVL and MIS holds 98% equity shares of OMEL, in the ratio of 51 (OVL):49(MIS) with balance 2% shares held by SBI Capital Markets Limited, OMEL held 45.5% PI In exploration block OPL 279, Nigeria and holds 64.33% PI in exploration Block OPL 285, Nigeria. OMEL also holds 1.11% of the issued share capital of ONGBV by way of Classic shares issued by ONGBV exclusively for AFPC Syrian Assets; such investment being financed by Class-C Preference Shares issued by OMEL in the ratio of 51:49 to OVL and MIS respectively.

MANGALORE REFINERY AND PETROCHEMICALS LIMITED (MRPL)

The Company continues to hold 71.62% equity stake in MRPL, a Category I Mini Ratna, which is single location 15 MMTPA Refinery at the west coast.

JOINT VENTURES/ASSOCIATES

I. ONGC TRIPURA POWER COMPANY LIMITED (OTPC)

The company has promoted OTPC with envisaged equity stake of 50% along with Govt. of Tripura (0.5%) and IL&FS (26%) to set-up 726.6 MW (2 x 363.3 MW) gas based Combined Cycle Power Plant (CCPP) at Palatana in Tripura to monetize its idle gas assets in Tripura. The generation project is in the advanced stage of implementation by Bharat Heavy Electricals Limited, as the turnkey EPC contractor. The financial closure of the project has been achieved and various linkages like gas supply from ONGC and power off-take by NE states have already been tied up. The company has successfully accomplished, riding on the back of a breakthrough transport agreement with the Government of Bangladesh, the highly challenging task of transporting the heavy and over dimensional project equipment to the site through multi-modal transportation route through Bangladesh. In view of the enormous challenges involved in setting up the project at such a remote location, the project timelines have been revised. The commissioning of Unit-I is expected in August 2012, and that of Unit II in December 2012. The total approved cost of the project is Rs. 34,290 million and the financial progress in terms of expenditure incurred till 30th April 2012 is Rs. 23,210 million.

II. ONGC PETRO-ADDITIONS LIMITED (OPAL)

The Company has promoted a JV company OPaL with envisaged equity stake of 26% along with GAIL (15%) and Gujarat State Petroleum Corporation Limited (GSPCL) (5%) to Implement a mega petrochemical complex comprising 1.1 MMTPA ethylene Cracker and global scale polymer units within Dahej SEZ, as a step towards downstream integration at a total revised cost of Rs. 213,960 million. Project Implementation is in full swing with 95% of contracts awarded and overall progress of the project is 53.2% as on 30th April, 2012.

III. MANGALORE SPECIAL ECONOMIC ZONE LIMITED (MSEZ)

ONGC with envisaged equity stake of 26% in MSEZ along with KIADB (23%) and IL and FS KCCI (51%) is promoting an SEZ in coastal Mangalore. Ministry of Commerce and Industry has formally notified to set up a Petro-chemical Specific SEZ in 1830 acres of land. Total land in possessions 2323 acres which includes 1543 acres of land for MSEZ and other Domestic Tariff Area (DTA) land for Resettlement and Rehabilitation (R&R) for MRPL etc. MSEZ has already allotted land to OMPL and lease agreement for 441 acres signed. Commercial terms have also been finalized with ISPRL for land. Infrastructure development for river water conveyance, water treatment plants, corridor development, power supply etc. is in progress. Development of R& R colony is undergoing with allotment of 931 pots to Project Displaced Family (PDF) out of total 951 plots planned. Other R&R package is also under implementation. The company has started earning operating revenue from FY 2011-12 with revenue of Rs. 1.90 million.

IV. ONGC MANGALORE PETROCHEMICALS LIMITED (OMPL)

ONGC has promoted OMPL with envisaged equity participation of 46%. along with MRPL (3%) for setting up manufacturing facilities for 0.92 MMTPA Para-Xylene and 0.270 MMTPA Benzene from MRPL's aromatic streams in Mangalore SEZ, as a value added project Around 97% of the project cost has been awarded which includes I major contracts relating to project management, technology licensor and LSTK contract for process packages etc. The project Implementation is in full swing. The total approved cost of the project is Rs. 57,500 million and total expenditure is Rs.25.920 million, till 30th April, 2012.

V. ONGC TERI BIOTECH LIMITED (OTBL)

OTBL is a Joint Venture company of ONGC, incorporated on 26th March, 2007, with The Energy Research Institute (TERI) with shareholding of 49% each and balance 2% equity held by the Financial Institution. The J V has been promoted for addressing the requirement of Bioremediation of oily sludge. Microbial Enhanced Oil Recovery, prevention of wax deposition in tubular and solution for other oil field problems. The turnover of OTBL in FY 2011-12 is Rs. 129 .96 million and Profit after Tax is Rs. 32.78 million as against turnover of Rs. 129 .54 million and PAT of Rs. 27.48 million in FY 2010-11.

VI. PETRONET MHB LIMITED (PMHBL)

PMHBL is a JV company of ONGC (28.766%). HPCL (28.766%) and PIL (7.898%). Balance 34.57% of equity is held by the leading banks. It owns and operates a multi-product pipeline to transport MRPL's products to hinterland of Karnataka. Throughput in FY 2011-12 is 2.771 MMT against total throughput of 2.576 MMT last year. As per un-audited results for the year 2011-2012,the turnover and PAT of PMHBL are Rs. 8,602 million and Rs. 3.650 million respectively.

VII. PETRONET LNG LIMITED (PLL)

The company has 12.5% equity staked PIL, identical to similar stake by other Oil PSU co-promoters viz., IOCL. GAIL and BPCL. Dahej LNG terminal of PLL which was expended to 10 MMTPA capacities in June 2009 is currently meeting around 20% of the total gas demand of the country. A new LNG terminal of capacity 5 MMTPA is under construction at Kochi and is expected to be completed by 2nd quarter of FY 2012. The turnover of PLL during 2011-12 is Rs.226,959 million (previous year Rs.131.973 million) and net profit Rs. 10,575 million).

VIII. DAHEJ SEZ LIMITED (DSL)

The Company with envisaged equity stake of 23 % along with Gujarat Industrial Development Corporation (26%), is developing a multi-product SEZ at Dahej in coastal Gujarat. Dahej SEZ covers the total land area of 1732 Hectares where in 1717 Hectares is processing area and 15 Hectares is non-processing area. 90% of the leasable land has already been alloted to 65 units and 13 units have already started export from the SEZ. The SEZ is operational audits turnover during FY 11-12 is Rs.484 million and profit after tax is Rs.198 million against the turnover of Rs.651 million in FY 10-11 and profit after tax of Rs.412 million.

IX. PAWAN HANS HELICOPTERS LIMITED (PHHL)

ONGC has 49% equity stake in PHHL, Balance 51% equity is held by the Government of India. PHHL is one of Asia's largest helicopter operators with a well balanced operational fleet of 40 helicopters. It provides helicopter support for ONGC's offshore operations. PHHL was successful in providing all the 12 Dauphin N and N3 helicopters fully compliant with AS-4 as per the new contract with ONGC.

MANAGEMENT DISCUSSION AND ANALYSIS

THE ECONOMY

The global economy has weakened and became more uneven in 2011. A barrage of shocks compounded the reeling economies. Japan was struck by a devastating earthquake and tsunami resulting in a massive nuclear disaster. The "Arab Spring" in MENA region led to turmoil, unrest and interruptions in flow of oil. The US economy still seems to be weighed down by the after-effects of the housing bust and 2008 financial crisis. However, recent data offers encouragement. The Eurozone encountered major financial turbulence, though it gave way to a cautious optimism, thanks to the completion of Greece`s debt restructuring and continued efforts by the European Central Bank (ECB) to keep credit flowing.

Owing to these factors, the world economic growth slowed to about 3.9% in 2011, after rising to 5.3% in 2010.

The emerging markets felt the pain of a weak and reduced demand from the reeling west. China, is feeling the effects of economic weakness in Europe and the US, but most likely would manage to avoid a hard landing. However, more worrying signs emanated from India which faces a slower economic growth.

India`s Real GDP growth slowed considerably during 2011; although still high (especially in the context of the rest of the global economy), at 6.5%. Inflation, which is finally easing, has remained stubbornly high over the past two years, hovering around double-digits, while the rupee dropped to new lows against the dollar during 2011. This coupled with the slowdown in advanced countries and the European macro-economic scenario has further dampened the Indian growth story in FY`12. In addition to worsening of Eurozone economic prospects, lack of fiscal space to provide direct stimulus to the economy and lack of consensus on domestic policy reforms have further affected India`s growth story. But the fact remains that Indian economy is multidimensional. Despite a disappointing year for the Indian economy, the economy may pick up from here. Inflation has started showing the signs of easing. Foreign investment, which dropped off considerably, is returning, pushing both the rupee and equities.

Globally, improved activity in the United States during the second half of 2011 and better policies in the Euro-area in response to its deepening economic crisis have reduced the threat of a sharp global slowdown. But, the recent improvements are very fragile. As per the World Economic Outlook-2012, global growth is projected to drop from about 4 percent in 2011 to about 3.5 per cent in 2012. The euro area is still projected to go into a mild recession in 2012. Real GDP growth in the emerging and developing economies is projected to slow from 6.25 per cent in 2011 to 5.75 per cent in 2012, with China`s growth rate projected to decline to 8.20 per cent and that of India`s to 6.90 per cent.

While the Economist Intelligence Unit`s (EIU) forecast for global growth is little changed from April 2012, the rising risk of an oil shock tied to tensions over Iran has replaced the euro crisis as their main global economic concern.

OIL AND GAS INDUSTRY DEVELOPMENTS:

LIQUID SUPPLIES:

Despite the slowdown, the world has so far avoided another economic crisis, and many economists believe that a full-scale global recovery will be underway by 2013. The slowdown, though, did not dampen the Oil prices which topped $100/bbl for most of the year, much of this was driven by a drop in Libyan production as a result of political uprising. There was also disruption of supply from South Sudan (due to its conflict with Sudan); Syria and Yemen, where EU has imposed sanctions.

Despite these outages, the global liquid supply rose to 86.9 million barrels per day (mbpd) in 2011 from 86.7 mbpd in 2010 (Source: EIA). This is primarily due to renaissance of domestic liquid fuel production in America. The growth in American crude oil production, which stood at 8.1mbpd in 2011, is being augmented by rising output of natural gas liquids and liquids derived from biomass.

Taken together, the output of domestic liquid fuels reached 8.8 mbpd in 2011, America`s highest level in two decades. Most analysts also believe shale oil to be transformational and oil production in the Bakken shale in North Dakota would aid the upward trend in domestic liquid fuel production in USA in the coming years.

On the back of a 14% supply increase from Saudi Arabia, OPEC contributed 29.99 mbpd and a further 5.78 mbpd of NGLs and condensate supply in the year 2011. This marked an increase of 2.6% over the last year`s OPEC production; its snare in global oil production also increasing to 41.3% in 2011 from 40.7% in 2010. In 2011, production from OECD countries, excluding USA, declined by almost 3% to 10.79 mbpd. Non-OECD countries almost maintained their production at 29.81 mbpd. The fact remains that the world is producing more oil and other liquid fuels than it needs and supply fears have eased up.

Now, the focus for geopolitical risks has shifted to Nigeria, Iraq and most pressingly, Iran. At least a portion of Iran`s 2.5 mbpd of crude exports will likely be denied to OECD refiners from July 2012. Besides, India and other countries are reducing imports from Iran. However, present surplus capacity and increasing unconventional oil production may provide the required relief.

CRUDE OIL PRICES

Crude oil price (Dated Brent) stayed strong all through in FY`12 and averaged US$ 114.29/bbl against the average of US$ 86.52/bbl during FY`11.

The last quarter of FY`12 has been the most volatile and oil price averaged US$118.81/bbl with a peak of US$ 126.40/bbl on 16th March 2012. The major reason for higher prices has been the perception that US economy is recovering based on the indicator that showed accelerated pace of job creation in US private sector. Also hopes that Greece debt restructuring will go through created better bargains for oil buyers and fanning interest in riskier trades.

However, benchmark crude prices continued to soften through most of April`12. From around $125/bbl at the beginning of the month, Brent prices slid to around $118/bbl by month end. Crude oil prices in May`12 continued to decline and averaged US$ 110.73/bbl; almost US$14/bbl less than the peak price in March`12.

The continuing surge in US domestic oil production, combined with relatively weak oil demand in North America and Europe helped to create a surplus of light low sulphur crudes in the Atlantic Basin. The price of medium and heavy sour crude is presently being supported by many crude oil importers seeking to replace the sanctioned Iranian crude.

Saudi Arabia`s assertion that higher oil price is not conducive for healthy oil market also helped the prices to cool down. Saudi Arabia continued to produce @10 mbpd resulting in easing the market. On 22nd June`12 it touched

a low of US$ 90.37/bbl. There is growing perception that oil industry will pose a situation of "balanced uncertainty" between the Iranian issues on the one hand and weak demand fundamentals on the other. The current global oil balance is tilted toward surplus; however, in the near term, due to completion of spring maintenance, rising refinery runs will support the prices. At the same time lingering fears over Iran may also help oil prices to be strong.

NATURAL GAS PRICE

Natural Gas prices (Henry Hub) witnessed steep fall during FY`12 as US has been facing a supply surplus of natural gas since last year. The price declined from US$ 4.92/mmbtu (on 9th June`2011) to the lowest price of US$ 1.84/mmbtu on 20^th April 2012. The excess availability (including production and imports) of natural gas increased in USA from 0.77tcf in 2007 to 2.1 tcf in 2011. However, from end of April, 2012 price rallied up and in June, 2012 (22 days) it averaged to US$ 2.36/mmbtu.

The low prices have prompted E&P companies engaged in shale gas production in the US to shift their operations to liquid-rich areas, considering better and sustained oil prices. This move by the E&P companies is expected to bring down the natural gas output of the country over next one to two years.

Furthermore, low natural gas prices in the US have encouraged its usage in power generation and petrochemical industries, which is expected to increase along with the country`s gas consumption in the near term. This has also encouraged the use of natural gas as a substitute of coal and naphtha. This rebalancing in the supply-demand scenario of natural gas in the US is expected to check the fall in gas prices in the near term.

INDIAN OIL AND GAS INDUSTRY

CRUDE OIL AND NATURAL GAS PRODUCTION

Crude Oil production during FY`12 in India has been 38.09 MMT; one percent higher than the production in FY`11 (37.68 MMT).Increase in production from Mangala field in RJ-ON-90/1 block in Rajasthan (in which the Company has a 30% stake) and Oil India Limited operated fields helped in maintaining the production levels despite natural decline in matured fields operated by the Company.

Natural Gas production during FY`12 has been 47.56 BCM against 52.22 BCM during FY`11; a decline of 9% over FY`11. Less natural gas production has been mainly due to lower production from East Coast field of a private consortium. (Source: MoP&NG and ONGC data). The Company maintained its position as the largest producer of oil and oil equivalent gas (O+OEG) in the country with its share of 61% in O+OEG (Crude oil: 71% and Natural gas 54%).

INCREASING CONSUMPTION; HIGHER DEPENDENCE ON IMPORTS

India has now a refinery capacity of over 213 MMTPA (against 198 MMTPA at the end of FY`11). Total refinery throughput during FY`12 (along with fractionators) has been 204 MMTPA against 196 MMTPA in FY`11; an increase of 4%. Out of this, 60 MMT of petroleum products was exported and total exports increased by 1.8% over the previous year.

Total consumption of the petroleum products in the country has been 148 MMTPA; an increase of 4.9% compared to the previous year. Consumption of three major petroleum products - Motor Spirit (MS), High Speed Diesel (HSD) and Liquefied Petroleum Gas (LPG) (which constitute 64% of petroleum products` basket), increased by 45%, 36% and 28% respectively in the last five years. However, consumption of Superior Kerosene Oil (SKO) decreased by 12% in the same period.

CRUDE OIL PRICE INDIAN BASKET

Indian crude basket remained strong throughtout the year (FY`12) with an average price of US$ 111.89/bbl compared to US$ 85.09/bbl during FY`11; an increase of 31 %. During March`2012 it was at peak with average price of US$ 124/bbl. Higher oil prices along with depreciating rupee proved to be spoiler for the country as well as oil companies.

The gains arising from oil (Dated brent) dropping below $ 90 a barrel (on 25.06.2012) for the first time since December 2010, were more or less wiped away by the Rupee depreciating to an all-time low of Rs.57.01 (on 25.06.2012) to a US dollar.

OPERATIONAL PERFORMANCE OF ONGC

The Company maintained its production levels from domestic as well as overseas field through innovative solutions. The total production during FY`12 has been 61.18 MMtoe of oil and oil equivalent gas; marginally lower than the production during FY`11 (62.05 MMtoe) mainly on account of lower production from Sudan and South Sudan fields due to geo-political reasons. At the same time production from Syria was affected due to European Union`s sanctions.

As far as domestic fields (ONGC operated) are concerned, due to continuous capital and technology infusion, in 15 major fields (which contribute about 73% of oil production of ONGC), production levels could be maintained. Seven of these fields registered more production than the previous year. Rudrasagar; their oldest field (discovered in 1960), registered more than 18% increase in its production as compared to the previous year.

OUTLOOK

A. EXPLORATION ACREAGE

Exploratory efforts of the Company focus on expeditious conversion of Petroleum Exploration License`s (PEL) to Mining Lease (ML). The number of MLs held as on 01.04.2011 were 330 (area: 27,891 sq km) which have (as on 01.06.2011) now increased to 338 (30,633 sq km). Presently (as on 01.06.2012) the Company`s exploration activities are spread in 29 nomination blocks and 77 NELP blocks covering total area of 433,235 sq km and 4`CBM blocks covering an area of 875 sq km. Besides that the Company holds participative interest in 13 blocks awarded to in consortium under various NELP rounds. However during the same period the number of PELs decreased from 62 (area: 80,982 sq km) to 40 (area: 73,840 sq km).

B. EXPLORATION PROGRAMME

The Company has submitted detailed exploration programme for 12th Plan period (FY`12 to FY`17) to the Ministry of Petroleum and Natural Gas which is under approval. Keeping in view the existing acreage portfolio, plan has been submitted for acquisition of 28,170 LKM of 2D and 25,713 Sq.Km of 3D data. 610 exploratory wells have also been planned during the period. The Company envisages accreting more than one billion tones of O+OEG of initial in-place volume of hydrocarbon and 360 MMTOE of ultimate reserves. There is also a plan to drill 1120 development wells for monetizing discoveries and development of the fields.

C. NELP DISCOVERIES

The Company has so far (as on 31.03.2012) made 26 discoveries (13 in deepwater, 5 in shallow water and 8 in onland) 15 NELP blocks. Commencement of production from these discoveries is governed by stipulations laid down in the respective PSCs.

Out of the eight discoveries made in the onshore blocks, commerciality has been declared in case of three and remaining five discoveries are under appraisal/ assessment for submission of commerciality or Field Development Plan (FDP).

Five discoveries made in the shallow water blocks are relatively recent and are being assessed for further appraisal/ development as per the stipulations laid down in the PSCs.

As far as the discoveries made in the deep water blocks are concerned, commerciality in respect of discoveries made in blocks KG-DWN-98/2, MN-OSN-2000/2 (MDW-2A) and MN-DWN-98/3 (MDW-4,5) has been submitted. However, ONGC has requested MoPNG to consider restructuring of timelines for appraisal (blocks covered under Rig Holiday Policy) for completion of remaining/ additional appraisal drilling to firm up the development plans for bringing them on production.

Appraisal programme in respect of MDW-10 discovery in MN-OSN-2000/2 has been submitted on 26.12.2011 in accordance with PSC stipulations. MDW-13 discovery in NEC-DWN-2002/2 is under assessment to evaluate its potential commerciality. The appraisal programme is required to be submitted by 27.10.2012 as per PSC. The discovery made in Andaman is under assessment.

D. DEVELOPMENT OF NEW FIELDS

The Company has taken up 12 major projects for development of new fields and one project for additional development of D- 1 field with estimated investment of Rs. 305.55 billion. The projects are:

a. Development of C-24 cluster fields

b. Additional development of D-1 field

C. Development of B-22 cluster fields

d. Development of B-193 cluster fields

e. Development of B-46 cluster fields

f. Development of North Tapti gas field

g. Development of Cluster-7 fields

h. Development of BHE&BH-35 fields

i. Development of WO-16 clusterfields

j. Development of G-1&GS-15 fields

k. Development of SB-14

l. Integrated Development of B-127 cluster fields

m. Development of C-26 cluster fields

These fields are being developed for early monetization of new and marginal fields. The Company took structured initiatives to monetize these fields cost-effectively through cluster development. Out of the above development of GS-15, in the East Coast has been completed and the field came on stream on 31st August 2011 and the field is currently producing 1,150 bbls of oil and 0.16 mmscmd of gas. Development of fields under C-Series, North Tapti and B-22 has partially been completed (with completion of the project facilities and drilling of some wells) and the fields have been brought to the stream. These fields are presently contributing more than 3 mmscmd of gas. Remaining fields are expected to be on stream by 2013-14.

E. IOR/EOR PROJECTS

Prudent reservoir management and enhancing the field life has always been a constant endeavour of the Company. The Improved Oil Recovery (IOR)/ Enhanced Oil Recovery (EOR) schemes implemented in 15 major fields have helped in sustaining production levels from the major brown fields and its effects are also seen during the year. Under the schemes measures like - facility optimization, upgradation / revamping of existing facilities, the greater use of advanced drilling techniques such as extended-reach horizontal drilling, side tracks, hi-tech wells and water injection, as well as technologies using chemical and thermal methods were implemented to enhance oil recovery.

The major fields undergoing IOR/EOR programmes have witnessed continuous growth in In-place volumes and all efforts are made to translate the same to reserves. Out of 22 IOR/EOR and redevelopment schemes in 15 major fields (onshore and offshore), 16 schemes have already been completed and six are under implementation. As of March 31, 2012, the Company has made an investment of Rs. 288.94 billion in these schemes. Cumulative oil gain through IOR/EOR schemes and redevelopment schemes has been more than 72 MMT.

F. UNCONVENTIONAL and ALTERNATE SOURCES OF ENERGY

As per the vision and guidance from the PP2030, the Company has prioritized suitable actions for exploration and exploitation of non-conventional and alternate sources of energy which has the potential to change the energy business landscape in the country as it is happening in the other parts of the world.

I. COAL BED METHANE (CBM)

The Company is presently operating in four blocks viz., Jharia, Bokaro, North Karanpura and Raniganj. In all Blocks, Phase-I activities have been completed. In Two blocks viz. Bokaro and North Karanpura, Field Development Plan (FDP) has been submitted after completion of Phase-II activities. Development Plan of Bokaro block has been approved on 02.02.12; however, approval for the Development plan of North Karanpura block is awaited. In remaining two blocks i.e. Jharia and Raniganj, Phase-II activities are nearing completion and Development Plans are to be submitted by August and October-2012 respectively. The Company has established more than 75,000 MMm3 of CUP and 124 MMm3 of Ultimate Reserves (ONGC share).

II. UNDERGROUND COAL GASIFICATION (UCG)

All the ground work and inputs for pilot construction have been finalized for implementation of UCG pilot at Vastan, Gujarat. On receiving approval for Mining Lease from the Ministry of Coal, the project shall be taken up. In parallel action, other sites have been taken up for studying their suitability for UCG. The Company along with the Neyveli Lignite Corporation Limited (NLC) identified Tadkeshwar in Gujarat and Hodu-Sindhari and East Kurla in Rajasthan for UCG exploration.One more site Surkha in Gujarat has been identified in association with Gujarat Mineral Development Corporation Limited ( GMDC). Based on the available data, all the sites have been found suitable for UCG exploration and shall be taken up on the basis of learning curve from Vastan project.

III. SHALE GAS EXPLORATION

The Company had taken up Pilot project for Shale gas exploration in Raniganj, West Bengal and North Karanpura, in Jharkhand. All the seven phases of the project have already been completed and in the Raniganj sub basin the Gas in Place (GIP) is estimated to be 48 Trillion Cubic Feet (TCF). GIP of the North Karanpura has been estimated at 1.5 TCF only and is not considered prospective. Shale gas specific data have also been generated from the study of drilled wells in Cambay, Krishna-Godavari, Cauvery, and Vindhyan sedimentary basins. Proposal for release of two R&D locations for Shale Gas exploration in Nada-Malpur-Kangam area of Cambay Basin has been submitted. Preparation is underway to submit two R&D locations for Shale Gas exploration in Krishna-Godavari Basin.

IV. ALTERNATE SOURCES OF ENERGY

A special Trust set by the Company "ONGC Energy Centre (OEC)" has partnered with Talboom, a Belgium engineering group, for a power project in the Geothermal energy domain. The collaboration aims at exploring the possibilities of exploitation of Geothermal energy in sedimentary basin by setting up a pilot power project in Cambay Basin. Further, OEC has signed a `Collaborative Agreement` with M/s Natural Power Concepts (Hawaii, USA) for Kinetic Hydro Power Project. The Project aims to generate power from the kinetic energy of the nation`s extensive and voluminous water bodies, thereby opening up possibilities for ONGC to play the role of a captive energy provider in the country`s many energy-starved and disconnected areas.

OEC is also focusing on exploitation of the rich database of ONGC drilled wells for locating commercial deposits of Uranium and to develop ISL technology for Uranium resources in Sand Stone. For Uranium exploration OEC successfully drilled two Parametric wells in Tamil Nadu in April`2012.

G. NON-E&P BUSINESS

I. REFINING

Mangalore Refinery and Petrochemicals Limited (MRPL), subsidiary of the Company, commissioned its Distillation and Vacuum Distillation Unit under refinery expansion project. The other units Diesel Hydrotreater and Hydrogen are under commissioning. Rest of the units are scheduled for commissioning progressively from June 2012 and last of the unit is expected to be completed by October 2012. With this, refining capacity will enhance to 15MMTPA. MRPL is further considering upgrading capacity to 18 MMTPA.

II. PETROCHEMICALS

The two petrochemical plants ONGC Petro-additions Limited (OPaL) and ONGC Mangalore Petrochemicals Limited (OMPL) promoted by the Company are progressing well and are expected to become operational in FY`13 and FY`14 respectively. These projects have basically been promoted for value-multiplication of in-house produced Naphtha at Uran, Hazira, and Mangalore and C2-C3 components at C2-C3 extraction plant at Dahej.

III. GAS BASED POWER PLANT

726.6 MW (363.3 x 2) gas based Combined Cycle Power Plant (CCPP) is being set up by ONGC Tripura Power Company Limited. (OTPC), an SPV promoted by the Company, at Palatana, Tripura. The project aims to monetize idle gas assets in the state of Tripura. The generation project is in advanced stage of implementation and the first unit is expected to be commissioned by August 2012 and second unit by December 2012.

IV. NUCLEAR POWER PLANT

The Company in association with Nuclear Power Corporation of India Limited (NPCIL) is studying the feasibility to setting up 1400 MW nuclear power plant.

V. CGD PROJECT

The Company is evaluating the feasibility to venture in to City Gas Distribution (CGD) project in 10 cities in collaboration with reputed companies.

If the present activities and identified growth avenues are mapped on a lager canvas, you find that ONGC is poised to emerge as an integrated Energy Company as per its vision.

CONTINGENT LIABILITIES:

(Rs. in millions)

Claims against the Company/ disputed demands not acknowledged as debt:-	31.03.2011
In respect of Company
Income Tax	11192.710
Excise Duty	4924.110
Custom Duty	1447.470
Royalty	19484.600
Cess	6.570
AP Mineral Bearing Lands (Infrastructure) Cess	1470.220
Sales Tax	29465.430
Service Tax	1039.920
Octroi	66.890
Specified Land Tax ( Assam )	2526.400
Claims of contractors in Arbitration / Court	34199.710
Others	17921.720
Total (A)	123745.750

Income Tax	8.910
Excise Duty	0.000
Custom Duty	3457.810
Cess	0.000
Sales Tax and Service Tax	3116.460
Claims of contractors in Arbitration / Court	9798.450
Others	4542.000
Total (B)	20923.630
TOTAL (A + B)	144669.380

FIXED ASSETS:

Ø Land

Ø Building

Ø Office building

Ø Plant machinery

Ø Furniture fixtures

Ø Vehicles

Ø Motor vehicles

Ø Railway sidings

Ø Computer software

WEBSITE DETAILS

PRESS RELEASE

ONGC ASSAM ASSET LAUNCHES PROJECT AGNI

Tuesday, March 05, 2013, 16:37

Guwahati: 'Project Agni', a fire safety campaign, has been launched by ONGC Assam Asset to sensitize people living in and around oil-field areas in the state. This is the largest-ever campaign launched in Upper Assam by ONGC Assam Asset to create awareness on fire safety among people to ensure proper management of their health, safety and environment.

"Project Agni will go a long way in sensitising awareness on fire safety among the oil-field people, who are our partners in progress," ED-Asset Manager of ONGC Assam Asset Bimal Kumar Baruah said.

Fire Services, a major component of safety, has been asked to undertake not only safety precautionary measures in and around installations but also safety of the people living in the vicinity, he said.

In addition to its main objective of sensitizing villagers about various do's and don'ts regarding outbreak of fire, the campaign also aims at safety of ONGC pipeline with the cooperation of the local people.

The campaign also aimed at sensitising the women on how to deal with fire and precautions required to take since they are more prone to household fire accidents, he said.

Mar 25, 2013, 02.54 PM IST

CAIRN BEGINS GAS SALES FROM RAJASTHAN BLOCK

After giving the nation a massive oil discovery, Cairn India today began natural gas sales from its prolific Rajasthan block on borders with Pakistan even as it put another oilfield in the area on production.

Oil Minister M Veerappa Moily and Rajasthan Chief Minister Ashok Gehlot turned the valves to begin natural gas sales from the Raageshwari field to a fertiliser plant in Gujarat.

Cairn and its 30 percent joint venture partner Oil & Natural Gas Corp ( ONGC ) will initially produce about 5 million standard cubic feet per day (0.15 million standard cubic meters per day) of gas, which will go up to a maximum of 1 mmscmd by next year.

Besides, Cairn-ONGC joint venture started production from Aishwariya oilfield, third of the famous MBA (Mangala-Bhagyam-Aishwariya) discoveries in the block.

The field will initially add about 2,000 barrels per day to Rajasthan block's current production of about 170,000 bpd. At peak, the field will produce 10,000 bpd which may be achieved by end of the year.

Mangala, the largest of the 25 oil and gas finds Cairn has made in the Barmer dessert block, was put into production in August-end 2009 and is currently producing about 150,000 bpd. Bhagyam, the second biggest find in the area, began producing last year and is currently doing about 20,000 bpd.

Cairn India CEO P Elango said the company can produce more "provided we get timely regulatory approvals". "We can make (this block) the largest producing field in the country," he said.

"Our gross Rajasthan development investment to date is more than Rs 18,000 crore and we intend to invest over Rs 6,000 crore in exploration and development activities during 2013-14."

ONGC's western offshore Mumbai High fields are the nation's biggest oilfield with an output of about 240,000 bpd (12 million tonnes).

Cairn currently produces small volumes of natural gas alongwith crude oil from the fields in the Barmer basin block. The gas produced in used for generating 48 MW of power that is used for internal consumption.

It, however, sees the resource base supporting commercial production of about 1 mmscmd.

Anil Agarwal, Executive Chairman of Vedanta Resources, which owns majority stake in Cairn India, said the company will bring technology and people to raise output.

Stating that India has abundant hydrocarbon resource, he said the Rajasthan block alone has potential to reach 300,000 bpd of crude oil production besides holding substantial natural gas resources.

ONGC TO INVEST RS. 4,0000.000 MILLIONS IN MUMBAI HIGH FIELD INFRA REVAMP

New Delhi: State-owned Oil & Natural Gas Corp (ONGC) today said it will invest over Rs. 40510.000 Millions in revamping infrastructure at its key oil and gas fields off the Mumbai coast.

The company also said it has made three oil and gas discoveries in Krishna Godavari basin and Tripura.

ONGC said it will invest Rs. 29131.000 Millions in revamping 48 ageing platforms at Mumbai High and Neelam & Heera oil and gas fields.

After the recent redevelopment efforts, these fields are expected to be in production till at least 2030 but the existing infrastructural facilities will not last that long.

"Hence revamping/retrofitting of these facilities in a phased manner is essential to maintain the production of oil and gas from Mumbai High and Heera fields," ONGC said in a statement.

The company board in its meeting yesterday approved revamp of 48 platforms on these fields by mid of 2016.

Also, the board approved Rs. 11385.000 Millions revamp of BPA and BPB process complexes on the giant Bassein & Satellite gas fields in the western offshore.

The two process complexes, which handle and process acidic and corrosive gas before the fuel is dispatched to Hazira Gas processing plant of ONGC, were commissioned in 1987 and 1989 respectively.

"Both the complexes have already covered the normal design life of 25 years," ONGC said. "As per prevailing Refurbishment Policy based on recommendations of statutory bodies, it is proposed to carry out revamping for various static equipment and pipelines of these two complexes."

While the revamping job of BPB is planned to be completed in 2013-14, the same for BPA is scheduled for completion in 2014-15.

ONGC said it has made an oil discovery in a KG basin block in Andhra Pradesh. Exploratory well Vanaduru South-1 in West Godavari block of KG Onland Basin, 8 km north-west of Bantumillli town of West Godavari district in Andhra Pradesh found very high quality oil.

In shallow waters of KG basin, its exploratory well Saveri-1 in NELP block KG-OSN-2004 flowed gas and condensate.

"This high potential discovery augments the hydrocarbon volumes established through two earlier discoveries namely Chandrika South and Alankari in the block and is a significant boost to ONGC's efforts towards attaining critical hydrocarbon volumes for viability of a possible 'cluster based development' for the block," the statement said.

In Tripura, gas was discovered in an exploratory well AD-37, 12 km south-west of Agartala in Tripura. "This discovery results in consolidation of play met in earlier discovery in AD-30 well and opens western flank of Agartala Dome up to Konaban for further exploration," ONGC added.

MARCH 12, 2013

ONGC TO SIGN PACT FOR MANGALORE LNG TERMINAL ON MAR 18

State-owned Oil & Natural Gas Corp (ONGC) will on Monday sign an agreement to conduct feasibility of setting up $500-750 million liquid gas (LNG) import terminal at Mangalore.

The Memorandum of Understanding (MoU) will be signed by ONGC, Bharat Petroleum Corp Limited (BPCL), Mitsui of Japan and New Mangalore Port Trust, official sources said.

The terminal will have an initial capacity of 2-3 million tons, which can be expanded to 5 million tonnes later.

The New Mangalore Port Trust (NMPT) has given 'no objection' to carry out the feasibility studies, sources said adding an investment decision is expected by early 2014.

The ONGC-led consortium is eyeing 2018 for commissioning the terminal.

The MoU would be signed in presence of Oil Minister M Veerappa Moily, who has been behind revival of the Mangalore LNG terminal that had been put in cold storage by ONGC six years ago.

The first phase of the terminal will cost $500-750 million (Rs 28000.000 to 42000.000 Millions) and is expected to be completed in 3-4 years.

In 2005, ONGC had plans to build a liquefied natural gas (LNG) terminal, which were then shelved in 2006 due to change in leadership. But now the company has again started looking actively at the plan of LNG import, with the clear idea that domestic gas availability at 160 million standard cubic metres per day in 2015-16 will be way short of demand of 290 mmscmd.

Also, Moily, who hails from Karnataka, is pushing the companies to set up the facility.

BPCL owns an equity stake in a giant gas field off Mozambique and it can ship its share of gas as LNG to Mangalore.

India has three operational LNG import facilities -- a 10 million tonne unit at Dahej in Gujarat operated by Petronet LNG Limited; a 3.6 million tonne terminal of Shell-Total at Hazira in Gujarat, and a just commissioned 5 million tonne facility at Dahbol in Maharashtra.

Mangalore is home to a 15 million tonne refinery as also a proposed petrochemical plant, both of which could be anchor customer of the imported LNG.

MOODY'S DOWNGRADES ONGC, GAIL LOCAL CURRENCY RATING

Mumbai, April 12:

Moody's Investors Service has downgraded the local currency rating of ONGC and GAIL. However, it retained stable outlook for these companies.

ONGC has been downgraded to Baa1 from A2 and GAIL to Baa2 from A3.

The rating reflects Moody's view that both ONGC and GAIL cannot be completely de-linked from the credit quality of the Government (Baa3, stable), and thus their ratings need to reflect the risk that they share with the sovereign.

The rating agency said that there has been no deterioration in the intrinsic credit quality in ONGC and GAIL. Both companies are still viewed as Government-related issuers. However, a weaker sovereign has the potential to create a ratings drag and, therefore, it is appropriate to limit the extent to which these issuers are rated.

Credit risk transmission

The agency pointed out that the transmission of credit risk from a sovereign to issuers domiciled in that country was made evident during the global financial crisis of 2008 and reinforced more recently during the European sovereign crisis.

ONGC and GAIL are predominantly domestic entities. While GAIL generates its entire revenue from India, it is 85 per cent for ONGC. Government owns 69 per cent in ONGC and 57 per cent in GAIL.

Moody's has narrowed the notching gap between the sovereign and these entities to better reflect this long-term transmission of credit risk.

Both issuers remain rated above the sovereign as a reflection of their stronger credit quality, but the gap is smaller than before, Moody's said.

Requisite for better rating

“In order to be rated significantly above the sovereign, an issuer needs to not only be fundamentally stronger than the sovereign from a credit perspective, but also demonstrate a degree of insulation from the domestic macro-economic and financial disruption, which generally accompanies a sovereign default, said Mr. Vikas Halan,” Vice-President and Lead Analyst, Moody's.

“We continue to take into account ONGC's superior fundamental credit quality, evidenced by its low debt and strong liquidity, and position its rating two notches above the sovereign's rating.

“However, we believe de-linking it further from the sovereign is not appropriate because of the 69 per cent ownership by the Government and the material exposure to domestic business, banks and counterparties,” Mr. Halan said.

MOODY'S DOWNGRADES ONGC, GAIL LOCAL CURRENCY RATING

Mumbai, April 12:

Moody's Investors Service has downgraded the local currency rating of ONGC and GAIL. However, it retained stable outlook for these companies.

ONGC has been downgraded to Baa1 from A2 and GAIL to Baa2 from A3.

ONGC SIGNS MOU WITH MINISTRY OF PETROLEUM & NATURAL GAS FOR 2013-14

Maharatna ONGC has signed Memorandum of Understanding (MOU) with the Ministry of Petroleum & Natural Gas for its Performance Evaluation Parameters and Targets for 2013-14. The MOU was signed on 25th March 2013 by ONGC CMD Mr. Sudhir Vasudeva and Petroleum Secretary Mr. Vivek Rae at Shastri Bhawan in the presence of ONGC Directors and senior officials of the petroleum ministry.

The MoU 2013-14 has sector-specific targets for production of Crude Oil, Natural Gas and Reserve Accretion. This includes ONGC's share from Domestic Joint Venture fields/acreages and production of Value-Added Products. Apart from the financial parameters, ONGC has committed itself to Human Resources Management, Research & Development (R&D), Corporate Social Responsibility (CSR) and Sustainability Development, Enterprise Specific parameters such as Energy Audits/savings, Health-Safety-Environment Audits, Finding cost and Production cost.

The MOU exercise is an annual and mandatory feature for all Central PSEs where the performance parameters are fixed between the CPSE and the Administrative ministry, before the financial year. As per new guidelines and directives of Cabinet Secretary, formal risk management training to senior management personnel has also been introduced as one of the parameters under Human Resource Management.

ONGC STRIKES THREE SIGNIFICANT OIL & GAS DISCOVERIES, TO INVEST OVER RS. 40500.000 MILLIONS TO UPGRADE ARABIAN SEA FACILITIES

In its 241st Meeting on 20th March, 2013, ONGC Board took note of three significant new discoveries which have been notified:

1. Vanaduru South # 1: (West Godavari PML block, in KG Onland Basin)

Exploratory well Vanaduru South # 1 in West Godavari PML block of KG Onland Basin, 8 km north-west of Bantumillli town of West Godavari district in the state of Andhra Pradesh was drilled to a depth of 3691 meter. On testing the interval of 3628 – 3634m in Nandigama formation, oil was produced @ 181 bopd and gas @ 51, 772 m3/day through 6 mm bean. The oil is of very high quality with API gravity of 49.20.

This discovery augments the High Pressure – High Temperature (HP-HT) play potential established through Malleswaram and Bantumilli South discoveries. It also adds a large area of South-Eastern flank of Kaikalur Lingala high to the high potential area of this play.

2. KG-OSN-04-NASA # 1: (Saveri # 1) (NELP block KG-OSN-2004/1, in KG shallow offshore Basin)

Exploratory well KG-OSN-04-NASA # 1 (Saveri # 1) in NELP block KG-OSN-2004/1 (NELP-VI in 2004) of KG shallow offshore Basin, 25 km south of Narsapur, was drilled to a depth of 2669.43 m.

On testing the interval, 2537 – 2543 m, gas flowed @ 4,09,453 m3/day through 3/8” choke. Another interval, 2246.5m - 2250m, also flowed gas @4,74,722 m3/d and condensate of 51.2° API gravity @ 72 bopd through ½” choke. This high potential discovery augments the hydrocarbon volumes established through two earlier discoveries namely Chandrika South and Alankari in the block and is a significant boost to ONGC’s efforts towards attaining critical hydrocarbon volumes for viability of a possible ‘cluster based development’ for the block.

3. AD # 37 (ADAO) in Agartala Dome Extension – II PML, in Tripura state

Exploratory well AD # 37 (ADAO) in Agartala Dome Extension – II PML, 12 Km south-west of Agartala in Tripura state was drilled to a depth of 3500 m. The interval 2809.5 – 2806 m in Middle Bhuban formation, on conventional testing produced gas @1,08,576 m3/day through 6 mm bean. This discovery results in consolidation of play met in earlier discovery in AD # 30 well and opens western flank of Agartala Dome up to Konaban for further exploration.

In the same meeting, ONGC Board also decided to invest over Rs 4050 crore to upgrade western offshore facilities (on the Arabian Sea) through two major projects as under:

a) Revamp of Unmanned Platforms Phase – II in Mumbai High and Neelam & Heera Asset

With the implementation of various redevelopment projects in Western Offshore, the fields are expected to be on production beyond 2030. The existing infrastructural facilities would be required to be in service beyond 2030 for Western Offshore fields, which is much more than the design life of these facilities. Hence revamping / retrofitting of these facilities in a phased manner is essential to maintain the production of oil and gas from Mumbai High and Heera fields.

In this context, and on the basis of technical requirement worked out based on the condition, age and modernization needs to produce from these fields in the years to come, 48 platforms of Mumbai High and Neelam & Heera Asset have been identified for revamping at a cost of Rs 29131.000 Millions.

The total revamp job is expected to be completed by pre-monsoon 2016

b) Turnaround/ Reconstruction (TARC) of BPA/BPB Complexes

Two major process complexes, BPA and BPB in the prolific Bassein & Satellite field of ONGC in western offshore were commissioned in 1987 and 1989 respectively.

Both Complexes handle and process acidic and corrosive gas (with H2S) for onward dispatch to Hazira Gas processing plant of ONGC. Also both the complexes have already covered /covering the normal design life of 25 years.

As per prevailing Refurbishment Policy based on recommendations of statutory bodies, it is proposed to carry out revamping for various Static equipment and Pipelines of these two complexes. While the revamping job of BPB is planned to be completed in 2013-14, the same for BPA is scheduled for completion in 2014-15.
The total project cost is estimated at Rs 11385.000 Millions.

ONGC-LED CONSORTIUM SIGNS MOU WITH NEW MANGALORE PORT TRUST FOR LNG REGASIFICATION TERMINAL

Dated: March 19, 2013

ONGC, with its consortium partners BPCL and Japanese conglomerate Mitsui, will set up a Re-gasification LNG terminal at New Mangalore Port. The consortium will carry out a Feasibility Study for a terminal of 2-3 MMTPA capacity, expandable to 5 MMTPA.

To formalize the intent, the ONGC-led consortium signed a MoU with New Mangalore Port Trust (NMPT) on 18th of March 2013. The MoU documents the Port’s No-Objection to carry out the feasibility studies and intention to extend all cooperation to the consortium in this regard. The MoU was executed in presence of Karnataka Chief Minister Mr. Jagadish Shettar and Hon’ble Union Minister of Petroleum & Natural Gas Dr M Veerappa Moily.

The MoU being inked at Mangalore by (seated from left) NMPT Chief Engineer M R Hedaoo, BPCL Director (Marketing) K K Gupta, ONGC Director (HR) & Business Development K S Jamestin and Mitsui General Manager Haruo Kumo. Seen applauding are Karnataka Chief Minister Jagadish Shettar, Petroleum Minister Dr. Veerappa Moily, ONGC CMD Sudhir Vasudeva, BPCL CMD R K Singh and Mitsui Chairman M Suzuki

Post this MoU, feasibility studies on the project will be carried out, including Technical, Marine and Environment dimensions. The studies would throw up concrete action plans; an investment decision is expected by early 2014. The consortium is eyeing a timeline of 2018 for commissioning.

Mangalore has a unique position vis-à-vis the future Demand and Supply matrix of LNG. From the Demand side, Mangalore is a fast-growing Industrial hub with presence of Mangalore Refinery & Petrochemicals Limited (MRPL), petrochemical complex ONGC Mangalore Petrochemicals Limited (OMPL) and Special Economic Zone Mangalore SEZ (MSEZ). Additionally, Mangalore hosts an Iron ore Industry, Fertilizer Industry and their ancillary industrial units. Currently, these industries are using heavy liquid sources like Fuel Oil and Naphtha for their energy and feedstock needs. Considering the growing demand of energy coupled with increasing focus on environment, there is a strong case for environment-friendly LNG replacing these polluting fuels.

As such, the Mangalore region rides on a virgin LNG demand of 2-2.5 MMTPA. The demand for Gas and LNG is sustainable, expected to grow significantly with expansion plans of Industries there. Once the gas pipeline infrastructure is in place, Mangalore region will get connected to all neighbouring states.

The coastal location of Mangalore also has a strategic advantage of readily available all-season operating port with favourable marine conditions and proximity to existing and upcoming global supply sources of LNG.

ONGC AMONG SELECT FEW GLOBAL OIL MAJORS IN GREEN RANKINGS

JANUARY 21, 2013

In spite of operating in a sector which is intrinsically polluting, ONGC’s environment friendly initiatives have been recognized by International magazine Newsweek, as it is ranked 386th in the Newsweek Green Rankings 2012 Global 500 list published on Oct 22, 2012.

This particular accomplishment by India’s Energy anchor is extremely praiseworthy in Indian context as the few Indian companies ranked higher than ONGC are mostly from IT and banking sector, which have lesser environmental footprints and impacts due to the inherent nature of their business.

ONGC VIDESH’S DE-KASTRI OIL EXPORT TERMINAL IS RUSSIA’S ‘BEST OIL TERMINAL 2012’

DATED: JANUARY 21, 2013

The De-Kastri Oil Terminal of Sakhalin-1 project (in which ONGC Videsh Limited has 20 percent stake) located near the De-Kastri settlement in Ulchi District of Khabarovsk Krai, has bagged the Best Oil Terminal Award of Russia in 2012. The award was announced at the VII International Oil Terminal Congress 2012 held in St. Petersburg.

This is the second time that the De-Kastri Terminal has received an award from International Oil Terminal Congress. Earlier in 2009, it was recognized as the Terminal of the year for its economic, environmental and social performance.

The oil is transported to the terminal from the Sakhalin-1 onshore production facilities at northeast of Sakhalin island via a 226-kilometer pipeline. The oil terminal has been in operation since 2006 and is recognized for its cutting edge technology and effective and sound environmental practices.

The terminal provides storage and export facilities that accommodate year-round crude oil export to world markets. One of the largest of its class, the single point mooring facility is being utilized to safely load the tankers in heavy ice conditions.

The terminal is the first in Russia to successfully accomplish the year-round export of oil during severe arctic winter conditions using specifically designed fleet of double -hull Aframax class tankers. To ensure safe navigation through ice fields during severe winters, the tankers are escorted by ice-breaking vessels.

Since the start of the operations, the terminal has offloaded 550 tankers till now with 51 Million tons of Sakhalin-1 produced oil, which makes it one of the largest ports of Far East Russia.

This efficient De-Kastri Terminal is an integral part of Sakhalin – I project in which ONGC Videsh has 20 % stake. The project is being implemented by an international consortium and operated by Exxon Neftgas Limited. The other consortium members in the block are Exxon Neftegas Limited (30%); Rosneft (20%); Japanese consortium SODECO (30%).

ONGC VIDESH ANNOUNCES INTENTION TO ACQUIRE THE STAKE OF CONOCOPHILLIPS IN NORTH CASPIAN SEA PRODUCTION SHARING AGREEMENT (NCSPSA) THAT INCLUDES THE FAMOUS KASHAGAN FIELD, SITUATED IN NORTH CASPIAN SEA OF KAZAKHSTAN.

DATED: 26^TH NOVEMBER, 2012

ONGC Videsh Limited (“ONGC Videsh”) has finalized definitive agreements for the acquisition of the 8.40% Participating Interest (PI) of ConocoPhillips in the North Caspian Sea Production Sharing Agreement (NCS PSA) that includes the Kashagan Field, in Kazakhstan. The acquisition, subject to relevant government, regulatory approvals, priority rights and consortium pre-emption rights, is expected to close in the first half of 2013.

The Kashagan Field, located in the shallow waters (~5m to 8m) of the Kazakh North Caspian Sea, is the world's largest current development project. Kashagan’s consortium partners are Eni, Total, Shell, ExxonMobil and KazMunaiGaz each with 16.81% PI, while ConocoPhillips has 8.40% PI and Inpex has 7.56%.

The acquisition would mark ONGC Videsh’s entry into the largest oil proven North Caspian Sea of Kazakhstan. From Phase 1, the acquisition is likely to add an average annual production of about 1.0MMT for a period of over 25 years with a peak of about 1.6 MMT. When Phase 2 and 3 are implemented, the OVL’s share will be significantly higher. The acquisition also bears a significant strategic importance to India in terms of contributing towards India’s energy security. ONGC has recently formulated its Perspective Plan – 2030 envisaging that the oil and gas production of ONGC Videsh would increase from the current level of 8.75 MMTOE in FY’12 to 20 MMTOE by FY’18 and 60 MMTOE by FY’30. Mr. Sudhir Vasudeva, CMD, ONGC said on this occasion that the current transaction is a major step towards achieving this goal.

Goldman Sachs is acting as exclusive financial advisor, Allen & Overy as legal advisor, E&Y as tax and accounting advisor and bayphase as technical advisor to ONGC Videsh.

About ONGC Videsh

ONGC Videsh is a wholly owned subsidiary of Oil and Natural Gas Corporation Limited, the national oil company of India. It is the largest Indian international oil and gas Exploration and Production (E&P) company. At present, ONGC Videsh has E&P activities in 15 countries.

JAPANESE COMPANY INPEX JOINS ONGC’S HUNT FOR OIL & GAS IN KG BASIN DEEP WATER BLOCK

DATED: NOVEMBER 05, 2012

OIL & NATURAL GAS CORPORATION (ONGC) and INPEX CORPORATION (INPEX), Japan’s largest oil company have entered into a strategic partnership for exploration of hydrocarbons in one of the acreages in KG basin. Both companies have today inked a Farm-out Agreement at ONGC’s corporate head-quarters in New Delhi.

INPEX has acquired a 26% participating interest farmed-out by ONGC in the exploration block KG-DWN-2004/6, located in the deep waters of Krishna Godavari Basin in the Bay of Bengal. ONGC continues as Operator of the Block with a 34% participating interest in consortium with existing partners GAIL (India) Limited (10%), Gujarat State Petroleum Corporation Limited (10%), Hindustan Petroleum Corporation Limited (10%) and Oil India Limited (10%). Respective Boards of ONGC and INPEX Corporation have already approved the proposal.

The block KG-DWN-2004/6, awarded to an ONGC-led consortium under the NELP-VI licensing round, is located some 300 km off the Andhra Pradesh coast and covers an area of more than 10,000 sq kms with a water depth of approximately 3,000 m. Operator ONGC has completed most of the phase-I exploration programme in the block except drilling of one well which is to be taken up.

Close on the heels of ONGC’s recent tie-ups this year with global majors like US based ConocoPhillips, China’s CNPC and Colombia’s ECOPETROL SA, this is yet another successful effort in its attempt to collaborate and expand its strategic interests.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 54.53
UK Pound	1	Rs. 83.60
Euro	1	Rs. 71.33

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	9
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	9
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--RESERVES	1~10	9
--CREDIT LINES	1~10	8
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		78

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.

MIRA INFORM REPORT

51654.400

61948.200

201245.700

0.000

309077.200

623925.500

307152.200

235556.500

542708.700

81216.800

29.87

47.88

28.08

0.32

0.04

1.15

Unit